The best UK supermarket loyalty schemes: Tesco, Sainsbury's, Morrisons and more
With food prices on the rise once more, we deliver our verdict on current supermarket loyalty schemes – and explore options for maximising points.
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Food prices to rise even further
The past few years have seen incredible increases in the cost of our food, and things are about to get worse.
As part of her Autumn Budget, Chancellor Rachel Reeves announced a shock increase in employers' National Insurance contributions.
In response, Sainsbury’s chief Simon Roberts said his firm’s bill will soar by £140 million this tax year, while M&S has also claimed its bill will increase by £60 million.
Inevitably, supermarkets will pass these costs onto customers.
We're already seeing signs of this, with the British Retail Consortium announcing yesterday that food price inflation had hit an 11-month high and warning that further increases were likely in the months ahead.
So what can you do about it?
One of the smartest ways to lower bills is to take advantage of loyalty schemes, but with so many programmes in place, it can be difficult to work out which is best for you.
Asda loyalty scheme
Asda’s scheme is a little different from other supermarket loyalty programmes.
Rather than earning points, you’ll build up a ‘cashpot’, which you can then convert into Asda Pounds (the store's digital currency) or vouchers to spend with the retailer.
You can do so through various methods, such as purchasing ‘star products’ and completing ‘missions’.
These missions may involve meeting certain spending targets and shopping in particular categories.
You’ll need to download an app to build up your cashpot.
Our verdict: While it’s always great to see a free loyalty scheme, your rewards will depend on how often you purchase those star products and complete your missions.
Co-op loyalty scheme
The supermarket offers a ‘Member Prices’ scheme, allowing eligible shoppers to benefit from reduced prices on certain goods.
Right now, deals include British strawberries (300g) for £2 and ‘freezer faves’.
With the latter, members pay £6 for five popular freezer items, including goods from McCain and Birds Eye.
Likewise, the Co-op offers an Aldi price match service on everyday items, such as milk, eggs and cheese.
Membership costs £1.
Our verdict: Although we’d always prefer a free scheme, the £1 joining fee is hardly likely to break the bank. The Co-op is also attractive for those who want a say in how a business runs as it is owned by its members.
However, it’s worth noting that offers are only available in selected stores.
Iceland loyalty scheme
Iceland offers a Bonus Card scheme. Users qualify for reduced prices on a bunch of items, while you can also choose to ‘save’ money into your account.
For every £20 saved, Iceland will top it up by £1.
You can then use your account balance to cut the cost of your shopping.
You can sign up online and use the app, or pick up a physical card in store.
Our verdict: The Iceland Bonus Card scheme is a useful way to save if you are a regular shopper and want to put some money aside for a big shop, likely at Christmas.
Lidl loyalty scheme
Lidl Plus is the discounter’s first foray into loyalty schemes and comes in the form of an app available on both Android and iOS.
Benefits include weekly offers and prizes.
This week’s offers include a 15% discount on Deluxe sourdough pizza and six almond ice cream sticks.
Note, these deals expire on 30 April.
How to access Lidl Plus
Shoppers need to download the app and register their personal details.
Once you’ve become a member, you can see a list of personalised coupons based on your previous shopping habits.
Be aware, you may need to ‘activate’ a coupon within the app, and you’ll have a limited period in which to use it.
The scheme may also appeal to fans of lottery-style games, offering prizes through Lidl Scratchcards.
Our verdict: While Lidl Plus won’t give you a return on the money spent in-store, it does offer regular shoppers a little extra, meaning it is worth a try.
Morrisons loyalty scheme
Morrisons’ fee-free More scheme offers a little of everything.
You’ll have the chance to earn points when you shop, which you can turn into rewards.
When you hit 5,000 points, you qualify for a More Fiver (ie a discount voucher to spend in store or online).
If you’re not signed up for the app, the company will print your Fiver in store.
You’ll also receive a More Card Stamp for every £10 you spend in store.
You can redeem your stamps against the Pyrex range of cookware and glassware.
The scheme also offers exclusive discounts and coupons, ranging from simple money-off deals to reduced prices on your regular purchases.
Our verdict: Morrisons brings together the best of other loyalty schemes, combining lower pricing on select products with the chance to earn loyalty points.
If you shop regularly at the supermarket, it’s worth signing up.
Sainsbury's loyalty scheme
Sainsbury’s is part of the massive Nectar card loyalty scheme, which allows you to pick up one point per £1 spent in-store and online, as well as a point for every litre of fuel purchased at Sainsbury's fuel stations.
One Nectar point is typically worth 0.5p.
Cardholders also get regular one-off, limited-time offers, based on the items they buy most frequently.
The company claims that personalised offers can help shoppers save more than £145 per year.
You can spend your points with partners including Sainsbury's, Argos, Esso and British Airways.
Crucially, you can only view your offers through Sainsbury's website or app.
Our verdict: The lower prices available through Nectar are a major selling point. The scheme also offers plenty of ways to dramatically boost your Nectar points, as we explain here.
Asda, Tesco, Sainsbury’s: one-hour supermarket delivery services
Tesco loyalty scheme
Entering its 30th year, the standard (and free) Tesco Clubcard scheme allows you to collect one point per £1 spent in-store and online.
You'll get one point for every two litres on Tesco Fuel.
It’s also worth stressing that having a Clubcard lets you access discounted Clubcard Prices on a range of popular household items.
At the time of writing, some of the most attractive deals include £6.50 on Coca-Cola Zero Sugar cans (24 pack), which is down from £11 (available until 6 May).
You can also bag 12 Andrex Complete Clean Mega loo rolls for £9, down from £11.75.
As well as redeeming points on your Tesco shop, you can double their value at the supermarket's rewards partners, including Disney+, P&O Cruises and the RAC.
Clubcard Plus
Tesco Clubcard Plus is a monthly subscription service that offers additional discounts and perks.
It costs £7.99 and the headline offer is a 10% discount on your grocery shopping.
According to Tesco, the scheme could save you up to £40 per month.
However, it has several limitations. For example, the scheme limits you to two big shops per month.
Other ways to earn points
On top of grocery shopping, there are plenty of opportunities to earn points via other Tesco products.
For example, Tesco Bank’s Purchase Card allows you to earn five points for every £4 spent at the supermarket, one point for every £4 spent on Tesco fuel (plus an additional point per litre), and one point for £8 of spending elsewhere.
Our verdict: The standard Clubcard scheme is risk-free and there are plenty of opportunities to pick up points and boost their value.
As with any financial product, it’s a good idea to do your sums before you sign up. You should typically aim to spend at least £80 on a qualifying food shop to cover your costs.
Tesco Marketplace: product range, delivery costs, Clubcard points, refunds, and more
Waitrose loyalty scheme
Finally, there’s MyWaitrose. Members benefit from personalised discount offers, as well as free coffees from self-serve machines in store when they make another purchase.
There are also exclusive competitions for members.
Likewise, you can get a free copy of the monthly Waitrose & Partners Food magazine and access to discounts at the Waitrose Cookery School.
If you’re a My Waitrose member with a Vitality health or life insurance plan, you can bag up to 25% cashback on Waitrose Good Health products.
Our verdict: The Waitrose card is worth considering if you have a Waitrose near you and shop there regularly as some of the rewards are instant.
As the company doesn’t have a rewards scheme, however, you’ll need to keep a close eye on discounts to make sure you get the most out of your spending.
Use cashback credit cards to supercharge your savings
Many financial experts regard cashback cards as a more attractive alternative to schemes that offer loyalty points or rewards.
This is because you can spend your cashback wherever you like without limitations, while earning cashback on all your purchases.
To use them efficiently, you should spend as normal and then pay the balance in full at the end of each month.
This means you'll receive all the card's rewards without paying any interest.
If you may forget to pay the card off each month, it’s a good idea to set up a Direct Debit to do this automatically from your current account.
Do you use loyalty schemes, and which one do you think offers the best value for money? Let us know in the box below.
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